Global buyers are prepared to pay a premium for this asset class
As the number of branded residences continue to grow worldwide, a vast number of developers, hotel groups and investors are looking to capitalise on this opportunity.
But, what are branded residences, what is the root of their appeal and what is driving the rapid expansion of this sector?
Sotheby’s International Realty are very excited to be in Qatar at this point in time when branded residences are becoming “the thing” to introduce to the local real estate market as a new product segment. It has proved extremely successful around the world and was not widely available before. However, we believe it is the perfect time for this asset class and this is a gap which needs to be filled in the high-end market.
We have tremendous experience as a company around the world in luxury residential properties. Personally, I have invested in and been involved in the investment aspect of branded residences for over 13 years. I have built numerous portfolios for wealthy clients, which sometimes end up as a hotel business, because at some point, I believe owning a branded residence, especially from a reputable brand, makes you own a piece of that hotel chain. Usually, the power of that brand will influence the demand and the price for your residence and bring exposure to it without you having to do anything.
I’ve seen prices of branded residences rise four times from the original offering and selling and renting at more than double the price of any similar non-branded property in the same area. This is because the right branded residence always comes with the right lifestyle, the right facilities and the right services, which the operating brand demands. This is usually the time when the market price is set and the demand for living in such development is fulfilled.
As individuals become global citizens with diverse business interests, time is becoming a rare commodity and with a full hospitality offering, individuals know that their day-to-day necessities are taken care of (housekeeping, concierge facilities or room service) and have full control and transparency of their costs and income.
Global buyers are prepared to pay a premium where they know their property is in the right location, safe, maintained well and serviced to international standards. While a brand association may result in a premium in any region, the additional value varies from one place to another. When it’s an entirely new offering, prices might be two to three times the price of anything in that market.
There are a limited number of branded residential projects to come to the market until the 2022 FIFA World Cup and we want to bring our expertise to developers to present their product in the right way to the international and local clientele.
Looking forward to 2020 and beyond, we will start to see amazing projects getting ready in Doha and lifestyle projects that are fit for one of the most exciting countries in the world.
This article was published as part of the fourth edition of Property Finder Qatar’s Trends Report